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HireScores.com Recruitment ForumRecruiters, Employers & Suppliers CentreGeneral recruiter topics (Moderators: Lisette, HireScores.com admin)Fixed Fee Recruitment
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Author Topic: Fixed Fee Recruitment  (Read 4996 times)
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« on: April 29, 2009, 02:08:44 PM »

It doesn’t take a genius to work out that reducing recruitment and advertising costs when hiring is key for most businesses, irrelevant of size or sector. In the current economic climate it is increasingly more important. Fixed Fee Recruitment is not a new phenomenon – over the last 8 years we have seen many models join the market all offering an alternative to your traditional recruitment route. Most of these businesses offer employers the chance to recruit for between £400-800 with a high success rate.

So there’s a ‘new kid on the block’ but what’s all the fuss about? Michelle Jones, founder of e-recruitment buddy says “We operate differently to many fixed fee services. What is important to understand is that clients pay per 4 week campaign, just £500, rather than per vacancy. So each candidate application is ‘theirs’ for the keeping.”

When recruiting multiple personnel in a similar type of position – wouldn’t it be great to capture a large number of candidates all for £500? The cost of advertising, across a network of job-boards, would far exceed the fixed fee rate, let alone the amount of time spent posting and managing the campaign, and dealing with all the responses.

“To give you an example” says Michelle, “we recently ran a campaign for a Web Systems role, advertising on 5 major job-boards and several niche players. This generated an initial response of over 150 applications, as well as hundreds of CV alerts. We removed the administrative burden from the client by filtering the applications and forwarding only the hottest candidates. This allowed the client to continue with their normal routine without the disruption of a mountain of unqualified applications flooding their inbox. Our client saw just 5 CVs that matched their criteria and have actually offered work to 2 of them! At the end of the campaign they were sent the remaining applications for their records. This saved them huge amounts of time, they were delighted with the results and it cost just £500!”

More employers are shifting to this way of recruiting as the benefits in terms of cost and time are clear. There is no catch, no hidden agenda – it is black & white; one low fixed fee to take the administration and financial strain that often puts pressure on firms when recruiting.

 
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« Reply #1 on: May 01, 2009, 01:04:43 PM »

It sounds like there's money to be made if you run a recruitment agency then? £500 for a staff member? It seems high to me. I feel I'm about to get shot down by recruiters  Roll Eyes.
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« Reply #2 on: May 02, 2009, 12:05:07 PM »

Well...This seems fine.Are there any other more modes of recruitment that you think can be equally effective.
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« Reply #3 on: May 04, 2009, 09:15:54 PM »

Of course I'm not involved in any way with the recruitment business (other than looking for a new job) but £500 fro somebody who's "on the books" seems awfully high just for a basic referral.

But then if somebody isn't on the books I guess it might be harder.
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« Reply #4 on: May 06, 2009, 12:00:43 AM »

I don't know I'd imagine even if a potential employee is on the books of  recruitment agency it's the agency that approach the company (or vice versa) about a permanent member of staff. I guess to advertise and recruit, to interview etc must be a costly business. A fee of £500 doesn't seem extortionate to me. And I'm fairly new to the recruitment industry.
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« Reply #5 on: May 06, 2009, 01:58:19 PM »

TBH I don't really understand this area I was just thinking out loud so yes, it probably is a fair price. If an agency could find me a permanent new job that I want they'd deserve at least £500 because I can't seem to find anything. But now isn't the time to be changing jobs as people keep telling me.
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« Reply #6 on: June 24, 2009, 12:57:25 PM »

There's definitely an increase in interest for fixed fee recruitment.

The Dragons Den star James Caan invested in Web Recruit, and they have a fixed fee, with recruitment online. They seem to do well!
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« Reply #7 on: June 25, 2009, 12:11:44 AM »

Is fixed fee recruiting a relatively new concept or has it been around for some time?

I feel I should know the answer to this question.

Which is why I'm asking of course  Grin.
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« Reply #8 on: November 10, 2010, 04:21:57 PM »

It sounds like there's money to be made if you run a recruitment agency then? £500 for a staff member? It seems high to me. I feel I'm about to get shot down by recruiters  Roll Eyes.

The recruitment Agencies charge employers a fee based on a percentage of salary and benefits offered.  This can be anything from 5% to 15% of the salary.

Employees offered a job who come via an agency introduction, always  get offered less salary as the employer knows he is going to be charged a big fee and the starting salary is reduced to offest this.  Oftentimes candidates sent by agencies don't get a look in and are used to "see what is out there" or for comparison.

This fixed fee of £500 is very cheap.  Lets hope they make a big success out of this and put all the % of salary "leeches" out of business.
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« Reply #9 on: November 28, 2010, 05:32:41 PM »


Employees offered a job who come via an agency introduction, always  get offered less salary as the employer knows he is going to be charged a big fee and the starting salary is reduced to offest this.  Oftentimes candidates sent by agencies don't get a look in and are used to "see what is out there" or for comparison.


Not at all true, agencies are used to save on management time when recruiting for a perm position and you build up a relationship with the recruiter not the company.  You usually get a discount but if you push for a discount too hard they will send you there second best candidates.  You get what you pay for and I would expect for a £500 fee you'll just get sent loads of CV's without any consideration as to the suitability for your company.  You might as well just advertise for the job yourself I would have thought.
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« Reply #10 on: November 30, 2010, 03:15:46 PM »



Not at all true, agencies are used to save on management time when recruiting for a perm position

Save on management time?  Just a "service" for LAZY managers to use.   It says it all that agencies would not send out their best candidates details if a discount is negotiated.

Jason, why not let this Forum know which agency you are/work for, when of course you're not on here instead of working!
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« Reply #11 on: November 30, 2010, 08:15:20 PM »


Save on management time?  Just a "service" for LAZY managers to use.   It says it all that agencies would not send out their best candidates details if a discount is negotiated.

Jason, why not let this Forum know which agency you are/work for, when of course you're not on here instead of working!

I don't work for an employment agency.  I am a busy manager with only 14 staff to manage all aspects of a business with quite a high turnover.  Recruitment agencies really do save a lot of time.  You can see it as lazy if you wish.  I could make time to plough through the hundreds of cv's we get when we advertise directly but then something else would have to suffer.  We pay about 3k - 4k for the average position we recruit for.  I don't like paying it but it's conveneint and allows me to concentrate on other areas of our business.
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« Reply #12 on: December 02, 2010, 12:14:42 PM »

You say you have just 14 staff.

How often do you need to recruit? 

Your business, your choice I suppose.
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« Reply #13 on: December 02, 2010, 10:37:40 PM »

How often do you need to recruit? 


Not often, at January 08 there were 9 staff and since then we've grown to 14 and took 2 on that didn't work out so you can figure out the number from that.
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